The technology driven e-commerce market in India has come of age and is growing rapidly to cross Rs.1 lakh crore by the year-end, an industry report said.
“Growing at 33 percent, the digital commerce market is set to cross Rs.1 lakh crore by December 2015 from Rs.81,525 crore in December 2014, with 53 percent growth,” the Internet and Mobile Association of India (IAMAI) said in the report.
The decade-old IAMAI represents digital businesses across the country and address challenges facing the industry, including mobile content and services.
The Indian Market Research Bureau (IMRB) International also associated with the IAMAI in preparing the latest “Digital Commerce” report.
Segments such as travel, e-tailing, financial services, matrimony and classifieds have leveraged upon the technology to drive e-commerce across the country.
“Online travel has emerged as the largest segment in terms of revenue generation, followed by online retail, mainly driven by cash-on-delivery, which accounts for 50 percent of its sales,” the report said.
Though financial services segment is a late entrant in the digital world, it has shown an upward growth due to growing awareness and trust on online transactions.
“Classifieds and other services like online entertainment ticketing and food/grocery ordering were, however, early entrants in the e-commerce space,” the report found.
In transactions too, the travel segment has been a driving force for the growth of the e-commerce industry in the country.
“Online travel by internet users accounted for 61 percent or Rs.50,050 crore of the digital transactions in 2014,” the report said.
Of the non-travel transactions that contributed to the remaining 29 percent or Rs.31,245 crore in value, e-tailing accounted for 76 percent or Rs.24,046 crore, financial services 14 percent (Rs.4,508 crore), matrimony and classified 3 percent (Rs.896 crore) and other services 6 percent (Rs.2,025 crore).
“The non-travel industry segment is expected to touch Rs.50,000-crore mark by December,” it said.
Mobile phones and phone accessories contributed 41 percent (Rs.9,936 crore) to the e-tailing segment, followed by apparel, footwear and personal items, which generated 20 percent (Rs.4,699 crore).
Consumer durables and kitchen appliances contributed 14 percent (Rs.3,404 crore) while laptops/net books/tablets, home furnishings and books generated Rs.2,780 crore, Rs.1,059 crore and Rs.648 crore, respectively.
The report also found that 45 percent of online shoppers prefer cash on delivery as a mode of payment, while 21 percent prefer payment through debit card and 16 percent via credit card.